An Economic and Policy Analysis of a District Heating System Using Corn Straw Densified Fuel: A Case Study in Nong’an County in Jilin Province, China

Shizhong Song, Pei Liu, Jing Xu, Linwei Ma, Chinhao Chong, Min He, Xianzheng Huang, Zheng Li and Weidou Ni
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Shizhong Song: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Pei Liu: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Jing Xu: Department of Mechanical Engineering, Jinan Vocational College, Jinan 250104, China
Linwei Ma: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Chinhao Chong: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Min He: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Xianzheng Huang: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Zheng Li: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China
Weidou Ni: State Key Laboratory of Power Systems, Department of Thermal Engineering, Tsinghua-BP Clean Energy Centre, Tsinghua University, Beijing 100084, China

Energies, 2016, vol. 10, issue 1, 1-22

Abstract: The development of district heating systems of corn straw densified fuel (CSDF-DHS) is an important option to promote the use of bioenergy on a large scale for sustainable development, especially in China. At present, China’s biomass densified solid fuel (BSDF) development lags behind previously planned target, main barriers of which are economic and policy support problems. Accurate case studies are key to analyze these problems. This manuscript takes Nong’an County in Jilin Province of China as an example to establish a techno-economic model to evaluate the economic performance of a CSDF-DHS under two policy scenarios. It calculates the economic performance under a benchmark market scenario (BMS) and the current policy scenario (CPS) and analyzes the influence of various policy instruments, including subsidies, carbon trading, and preferential taxation. The results indicate that: (1) The CSDF-DHS option is not competitive under the BMS or CPS compared to the traditional energy system based mainly on coal and liquefied petroleum gas; (2) Comparatively, the economic performance of corn straw briquette fuel (CSBF) is better than that of corn straw pellet fuel (CSPF); and (3) further policy support can make CSDF-DHSs competitive in the market, especially with subsidies for concentrated heating services and CSDF, carbon trading, and economic compensation to reduce the profit margin of enterprises, which can make both CSPF-DHSs and CSBF-DHSs competitive. The research results could provide scientific basis for relevant policy making and project decision.

Keywords: corn straw; solid densified fuel; district heating system; economic model; policy influence (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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